Bank of Baroda surges 10% as net profit doubles, aims to grow loan book by 12% next year

• Bank of Baroda said it is on track to achieve a loan growth of 7-10% in the current financial year and expects advances to grow 10-12% in FY23.
• Shares of the public sector bank surged 10% on Monday on strong October to December quarter results.
• The lender’s net profit doubled to ₹2,197 crore.

State-owned Bank of Baroda delivered strong financial performance in October to December quarter and also gave a robust growth forecast for loan book in FY23.

Bank of Baroda is on track to achieve a loan growth of 7-10% in the current financial year and expects advances to grow 10-12% in FY23, Sanjiv Chadha, managing director and chief executive officer, reportedly said.

The bank witnessed an improvement in bad loans and also lowered provisions in the December quarter.

Moreover, Chadha also said that the bank’s advances have been improving since the second quarter after it saw some challenges in the first quarter due to the impact of the COVID-19 pandemic.

“The investment thesis remains largely unchanged as we are currently seeing all public banks, including Bank of Baroda, emerge from a weak corporate non-performing loan (NPL) cycle. The impact of Covid has been manageable,” said Kotak Institutional Equities.

SEE ALSO: Future Group’s Kishore Biyani, Mohandas Pai and 68 others invest in former Twitter India head’s latest startup
Here’s why a home loan is cheaper for you than what the safest borrower in the country pays as interest